Do you remember an example of them blocking acquisition of major British companies by foreign entities?
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Nvidia CPU's? Nvidia is looking at a takeover bid for ARM
- Thread starter Grim5
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Do you remember an example of them blocking acquisition of major British companies by foreign entities?
They wont block anything. Even under Blair and Brown the UK position was that overseas takeovers were 'Foreign Direct Investment' and a good thing. The Tories won't touch this and the 'regulators' here are generally toothless. Look what happened to Cadbury. Assurances made and then swiftly broken.
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Associate
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This deals involves more than 2 countries so whatever the UK decide might be irrelevant.
Large deals are blocked although sometimes they are saved by having concessions written into the deal.
There might be a lot of lobbying going on behind the scenes about this in the US.
With an election looming who knows how fragile alliances are right now.
Caporegime
This,and then we shut down our own space programme due to foreign pressure. The French didn't give a damn,and made there own which has been quite successful.
Soldato
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I am not mocking, i am asking a specific question, who owns ARM now that has a regulator to pass?
Are we talking nvidia in the US, as I don't think that the UK regulator can take any say in it, the govt missed their chance previously.
Which agency has an interest in this?
Associate
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Right now ARM is owned by Softbank.
Only if and when the deal is completed will Nvidia own them.
Large international deals can take over a year to complete.
I have no idea what say the UK has in this.
ARM has a head office still in the UK I think, but no idea how that impacts a deal.
If you look at what Trump is doing against Huawei, that gives you an idea how complicated and interdependent international trade is.
I'd be surprised if the UK agencies do much if anything of note, except for making fools of themselves.
There are other regulators like the US, the EU, China and others.
A number of business leaders have signed an open letter calling on the Prime Minister to stop the merger.
https://www.bbc.com/news/technology-54142567
https://www.savearm.co.uk/
Let's hope someone with sanity blocks it because there is absolutely no need to have ARM owned by Nvidia.
From what I've read(I will post when I find it) it's not a straight up purchase like I thought it was going to be, others too I would guess.
Softbank will be the biggest share holder and receive and 12B in cash from Nvidia .
Edit:
Found it. https://arstechnica.com/gadgets/202...re-arm-holdings-from-softbank-for-40-billion/
Softbank will be the biggest share holder and receive and 12B in cash from Nvidia .
Edit:
Found it. https://arstechnica.com/gadgets/202...re-arm-holdings-from-softbank-for-40-billion/
Associate
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That's not how regulation works. They have to have tangible reasons to block a deal, not 'emotional reactions'.
ARM was already sold to a Japanese company so the UK government intervening now seems ridiculous.
Governments don't just make U-turns at the drop of a hat.
As long as Jen-Hsun Huang wears a leather face mask when he signs the deal with a 2m pen Boris will be happy.
Associate
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No, Nvidia will own ARM outright but will pay for it partly with their own shares making Softbank the largest shareholder in Nvidia.
Yes but softbank will own a junk of Nvidia, seems like a weird deal to me. Not up on the whole corporate buying/shares thing tbh
Soldato
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Well he has said everything will stay in Cambridge and more jobs will open. Big push for AI, have to see how it pans out.
The problem is Huang's gigantic ego. He will close ARM licences, anyways, and make everything proprietary.
It's written in the Open letter by Dr Hermann Hauser FRS, KBE:
"Secondly, the sale of Arm to Nvidia will destroy the very basis of Arm’s business model which is to be the Switzerland of the semiconductor industry dealing in an even-handed way with its over 500 licensees. Most of them are Nvidia’s competitors. Among them are many UK companies. Do not believe any assurances which are not legally binding."
Associate
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This is a normal way for large buyouts to work.Yes but softbank will own a junk of Nvidia, seems like a weird deal to me. Not up on the whole corporate buying/shares thing tbh
Softbank will own maybe 10% of Nvidia and can sell the shares but maybe not until a specified period of time has elapsed.
Associate
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That's just plain BS.
If you say so....
Nvidia owns an ARM license and uses it to make its SoCs Tegra, or whatever they are called, hence it's in direct competition with every ARM-chip maker, Nvidia has a direct interest to stop selling the licenses to Samsung, Qualcomm, Apple, AMD, and all the others.
Soldato
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I think it'll work out good.
I questioned the sale originally but apparently that's capitalism
. However, we only seem to sell our UK companies. Just after the recent election we even sold off a defence company too so makes me laugh when UKGov queries the sale of Arm over security risks. I held shares of Arm and despite the quick buck made, I was still pretty miffed about it being sold off. So anyway, we did nothing to stop the sale originally so don't see why the UK should kick up any fuss now, given that it's not even UK owned at present.Imagination technologies is another previously promising tech company.Sold off when the times were bad in this case but since being sold, seem to be doing pretty well again after picking up an Apple deal/contract, which is the reason why they originally went through a bad time as Apple ditched them. As Apple was their biggest client, the shares tanked & then sold off to a Chinese private equity company.
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Associate
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ARM chips are used in so many market segments most of which Nvidia has no interest in which is why that comment was just plain wrong.
Now there are a few very large high profile companies that have an ARM license that currently compete with NV or might do in the future, but that is still a very small minority.
That makes no sense financially.
Apple has a perpetual architect license so they can just carry on.
You are wrong. How do you know that Nvidia has no interest? Why does Nvidia bother at all to spend $40B for ARM if it has zero interest?
This whole situation is one largest conflict of interest and the merger should NEVER be allowed by the regulators.
Not the least, because of Nvidia's corrupt nature and threat for the industry security.